PERTH (miningweekly.com) – Uranium developer Boss Energy will raise A$60-million in a share placement, to fund the purchase of 1.25-million pounds of uranium on the spot market.
The company on Monday said that it would issue more than 428.5-million shares, at a price of 14c each, under its existing placement capacity.
The offer price represents a 9.7% discount to Boss’s last closing price, and a 10.6% discount to the company’s ten-day volume weighted average share price.
The proceeds from the share placement would go towards the strategic purchase of 1.25-million pounds of uranium on the spot market, with Boss telling shareholders that the company had already inked the binding agreements to purchase the uranium inventory, which was currently warehoused in Illinois.
The company will purchase the uranium at an average price of $30.15 a pound.
Boss reported that 0.25-million pounds of the uranium would be acquired by the end of April this year, with the remaining 1-million pounds acquired by the end of June. The uranium will remain stored at the Illinois facility.
“We have been able to create this unique opportunity thanks to our highly experienced and well connected operatives in the global uranium market. This stockpile will be highly valuable to us on several levels as we secure offtake agreements, finalise project funding and move into production,” said Boss MD Duncan Craib.
The inventory will support the planned restart of Boss’s Honeymoon operation, and will increase flexibility in project funding and offtake negotiations, while de-risking the project re-start during the commissioning phase.
The remaining funds from the capital raise will be used towards storage costs for the uranium inventory, and for general working capital.